The city is a large commercial center in the region, attracting shoppers to its sidewalk and neighborhood galleries and shops.
The rural area, also called the "colony", due to the fact that German immigrants built isolated farming communities there, is characterized by the production of fruit, rice, and livestock.
In times past the production of charque, or dried beef, was economically important. The work was usually done by slaves. The charqueadas, as the livestock ranches were called, are still popular tourist attractions, the most famous being the Charqueada Santa Rita and the Charqueada São João
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